Question

If the business of ABC Limited, a loss-making company, is taken over by a new company ABC (New) Limited, it is called

Answer 1

Explanation:

If the business of ABC Limited, a loss-making company, is taken over by a new company ABC (New) Limited, it is called

Answer 2

Answer:

If the business of the losing company, ABC Limited,  is acquired by a new company, ABC (New) Limited, it is called external reconstruction.

Explanation:

•  This process is called external rebuilding. In other words, external restructuring refers to selling the business of an existing company to another dedicated company.
• In the external restructuring, one company is liquidated and another is newly established.

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